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Telsa Model 3 Prices Slashed Again


But the fabled $35,000 car is still not here.

Tesla has been a victim of its own success as the company has now sold enough cars to trigger a reduction in the $7,500 EV tax credit. Buyers will now receive just $3,750 as a tax credit for buying a Tesla, prompting the automaker to lower its prices by $2,000 to offset the tax credit reduction.

Initially, the full $2,000 was only found on the pricier Model S sedan and Model X SUV while the smaller Model 3 only received a $1,000 discount. Since Tesla loves to frequently change its pricing, the Model 3 has now been reduced by another $1,100.

The Mid Range Battery Model 3 now starts at $42,900 compared to its previous starting price of $44,000. Tesla still tries to claim incentives and savings in fuel in the price, so don't be fooled by the $34,850 listing price. This is not the $35,000 base Model 3 we have been promised for years, though it is the most affordable version we have seen so far. The Mid Range Battery model includes 264 miles of range, rear-wheel-drive, and a 0-60 mph time of 5.6 seconds.

"I want to be a broken record about this: It's cost, cost, cost, cost," said Tesla CEO Elon Musk during an earnings call. "Getting those costs down - variable costs and fixed costs - is what allows us to lower the price and be financially sustainable and achieve our mission of environmental sustainability. We have to be absolute zealots about this, there's no question."

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Musk has promised an April or May arrival for the $35,000 Model 3, though Tesla has failed to meet deadlines like this in the past so we remain dubious. For now, the cheapest Model 3 will cost you $42,900 plus a $3,750 tax credit, bringing the cost down to $39,150. It may not be as affordable as the Chevy Bolt of Kia eNiro but the Model 3 is still a compelling choice in the affordable EV segment.